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%RippleLabs and the Securities and Exchange Commission (SEC) have formally resolved their bitter legal battle. As part of a case involving one of the largest crypto cases in history, both parties filed a Joint Stipulation of Dismissal today in the U.S. Court of Appeals for the Second Circuit. This filing brings all pending appeals connected to the case brought in 2020 to a close.

The court case began when the SEC accused Ripple of illegally selling XRP as an unregistered securities offering. However, a major court case in 2023 concluded that the sale of (CRYPTO: $XRP ) on public exchanges did not fall under securities transactions. The decision opened the door to partial legal victory by Ripple and, eventually, to the present settlement.

The parties have reportedly agreed to an agreement-in-principle, which needs to be approved by the SEC in order to start formally dismissing the appeals. The final document included the signatures of Ripple executives, Brad Garlinghouse and Christian A. Larsen, along with SEC counsel to ensure their entire authorization.

XRP Cleared of Future Federal Litigation

The withdrawal of appeals leaves Ripple without federal-level litigation concerning the regulatory status of XRP. The ruling clears the mist of uncertainty that has covered the operations of the business and lifted a huge legal overhang in the U.S. digital assets sector.

The result can also affect the treatment of other crypto tokens under the securities law in the U.S. Legal analysts believe that the case will provide a precedent in future enforcement and regulatory regimes, particularly as Congress is still on the path to establishing comprehensive digital asset legislation.

The case was originally filed in the U.S. District Court in the Southern District of New York, but was resolved after Judge Analisa Torres ruled that Ripple XRP was not a security when listed on secondary markets. The court left the question of institutional sales open, but the new agreement shows that both sides have since reached a resolution on all fronts.

In reaction to the conclusion, the Chief Legal Officer at Ripple, Stuart Alderoty, released a statement on X. He cited the internal vote of the SEC in the decision to dismiss and accepted the final filing. In a post-reading, "the end… and now back to business," Alderoty indicated the company was moving back to business, no longer distracted by legal issues.

The decision brings regulatory clarity to Ripple and XRP holders in a much-needed way. It also adds weight to the rising calls for more transparent digital asset policies within the U.S, where crypto companies demand a firmer footing amidst the regulation changes.